Images associated with image links may be displayed inline in the buffer. This is not possible when not using a GUI (emacsclient). C-c C-0 then opens a useless text version.
It should be possible to define an external program like eog to open the image. In org-mode this is done by defining (add-to-list 'org-file-apps '("\\.png\\'" . "eog %s"))
It would be great, if this would also be possible in markdown-mode.
Issue first raised in syl20bnr/spacemacs#11973