I currently have this code from a plugin.
This cache an Image Link, and it simply display the link, I want it to display it as an image. Is this possible?
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This is some specific shortcode to some plugin, that if you just want to paste an image in wordpress editor isn't necessary. (Also there is not enough info about what this shortcode is about).
So there is simple HTML that will simply display link you want as an image, following:
<img src="http://here-goes-some-url-of-your-image" />
Make sure you put the url in between the quotations as mentioned in this tag, and that you put actual link in there. Also make sure you paste this in wordpress text editor(tab next to visual editor) and when you publish your post/page it will be there :)