Lacy,
Yes, you would have to add some HTML code if you select "Add an HTML element". It would look something like this:
<a href="
www.yourwebsite.com"><img src="
http://www.website.com/image.jpg" alt="
Image Description" border="0" style="display:block; padding: 0; text-decoration: none;"></>
Just replace the bold areas with where you want the link to go, the URL of your image (you can find this in the Design Studio), and an appropriate description.
Hope this helps!