JSFiddle - React, Tailwind, and code Playground

HTML

<label for="input">Upload Photo</label>
<input id="input" type="file" accept="image/*">
<div id="output" tabindex="0" contenteditable="true">Editable Content</div>

CSS

input {
  opacity: 0;
}

JavaScript

function pasteImage() {
	document.getElementById("output").focus();
	var reader = new FileReader();
  reader.onload = function(e) {
  	document.getElementById("output").focus();
  	document.execCommand('insertImage', false, e.target.result);
  }
  reader.readAsDataURL(document.getElementById("input").files[0]);
}

document.getElementById("input").addEventListener('input', pasteImage);
document.getElementById("output").focus();