Image Embedding Is Just a Link

I’m using the classic style plugin with my SiteOrigin page builder on my theme. I want to do a simple embed of an image in a post from a remote URL location (not uploading to the media gallery). I’ve tried using both the “Add Media” button in the Live Editor and using a custom HTML code box, but when I insert the string, it just sits there as a clickable link instead of embedding the thumbnail into the post. Not sure what’s wrong. Any thoughts?