You can upload images to a self-made directory Images (or so) at your webspace, but keep an eye on the MB's that available. I always put paths into my databases:
e.g.
photo1 -> Images/photo1.jpg
You just ask you database for the path of photo1, put this path in a variable $path en then you use that variable in your html:
<img src=$path>
You can also 'store' other mediatypes like this into your database (like mp3). The methode is called relative referencing (it keeps your database light-weight and fast).
Johan