Microsoft Outlook doesn’t provide an easy way for users to download images that may be embedded inside an email. You can right-click an image in Outlook and copy it to the clipboard but there’s no option to you save that picture to a folder or on your desktop which can be a bit frustrating at times.
Here are some work-arounds:
Option 1: You can copy the image to the clipboard (Control+C) and paste it (Control + V) into a photo editing tool like MS Paint or Adobe Photoshop.
Option 2 Outlook 2010: Open the email message and save it as an HTML file.
(File > Save As > Web page .html) See screen shot below– this will save all the embedded pictures in one folder.
Save it to your desktop or a local folder.
Go to the desktop and open the folder that was created when you saved the files.
In the folder there will be some files for the email message but the ones you are looking for are named sequentially and end in .jpg
And that's it. You have downloaded your images from an Outlook Email Message.
Option 3 for Outlook 2007: Open the e-mail message and under the Message tab, select Other Actions > View in Browser. This would open your email inside the default web browser as a regular HTML web page and you can right-click to save an embedded picture in whatever folder you want.