When you upload a photo you will see info at the bottom right of the page which gives you options for this:
Use Inside Text
To use this image inside the text of a profile, try pasting this snippet of code into the bio/text section:
{{Image|file=Photos Image Description-.jpg
|caption=
}}
To align it on the right side of the page, in a medium size, with a different caption:
{{Image|file=Photo Image Description-.jpg
|align=r
|size=m
|caption=Here's an image.
}}