To change the download settings—if you think that's a good idea—you would click the Infobar at the top of the message and click Change Automatic Download Settings.
Now you understand why Outlook does not download some pictures in e-mail. It's to help preserve your privacy.
But Outlook also gives you control of this feature. If you wanted to change this default setting, you would use the Change Automatic Download Settings command, shown in the picture. However, to avoid spam, we recommend leaving the default settings as they are. And it's easy to open any pictures you do want to see.