Writer does not Respond when paste an Image copied from the web. Try google for any image and you’ll see.
Please provide platform, LO version, and image details.
This works for me – but it does seem to paste “as link”. Are you online? (You don’t mention what version of LibO you’re using, or your OS - that makes it more difficult to know what issues you might be facing.)
In my workflow, “copy/paste image from web” wouldn’t be something I would normally do, though. I would save the image (assuming that was legal 
to local file, then insert via Insert > Picture > From file....
FWIW.
You can also right-click on an image (e.g., Google image search result) and use Edit > Paste Special… > Bitmap to obtain an embedded image.