As the name suggests, the 'Convert URLs into links and images' filter converts a URL such as http://moodle.org into a clickable link http://moodle.org. In addition it can replace image URLs with images.
Site administration settings
The 'Convert URLs into links' filter has two settings which may be changed by a site administrator in Administration > Site administration > Plugins > Filters > Convert URLs into links and images.
Apply to formats
The filter may be applied to text entered in any/all of the following formats: Moodle auto-format, HTML format, plain text format, Markdown format.
Embed images
By default, the filter replaces image URLs with images, however this feature may be disabled by a site administrator.
