To looking like this with your choice of pictures ^.^
Okay-- I didn't create my own html code. I found a couple websites which told how to make changes to the blogger label/categories gadget-- however I didn't want just any changes. I had seen on a couple different blogs (my favorite example being Beloved Bluebird's Website) which had picture categories and I thought, "I want!"
Yes, I did want. But it was super hard to find anything close to what I wanted! Finally, while looking through the comments of this Website's label changes I found that someone else had wanted pictures for their categories too! So, hoorah, the post author replied and gave this code:
<a href="YOUR LINK HERE" target=" blank">
<img src="URL OF THE PIC" border="0" />
I was ecstatic! All you have to do is copy the link into an HTML/ Java Script gadget as many times as categories/pictures you would like. Next open the link to the label you would like on the top, and open the picture (on photobucket or some like site) as well. Copy those links and replace the caps writing in the code with them.
Oh and if you're like me and couldn't figure out how to open the picture in photobucket to easily copy the link, don't worry. I have blonde moments even though my hair is now darker... Anywho! All you have to do is (not surprisingly...) right click and open the image in new tab. I know... Who wouldn't think of that. But anyway-- I didn't so, that's who! ^.^
Have a wonderful rest of the week!