When should I put an image in a data URI?
For small things used once, such as an icon or a tiny background, where saving a request is worth more than the third it adds. A large picture belongs in its own file, which the browser can cache and load alongside the page.
Does a data URI work in every browser?
Yes, in every current browser, in img tags, CSS backgrounds and fonts. A site with a strict Content Security Policy has to allow data: for images, or the picture is blocked.
How do I turn the Base64 back into a picture?
Paste it into the Base64 box: the decoder reads the data: part, recognises the PNG or JPEG from its first bytes, and offers the file to download.