How to display HTML on EditText?

I am trying to make an Android Application, it is intended to be a notes app, similar to Evernote. For the ones that have used Evernote (or every other good notes app) you may already know that it allows users to not only save text, but to add images, files, and other formatting features too.
So I came up with the idea of using HTML so the user can attach images and have different text styles (bold, regular, italics, etc...).
The user would select an Image of his files, and the HTML should show it in the EditText itself. Same thing with the Text Style.
Is it possible to achieve this? Would I need to use a library?

EDIT
I followed Lena's answer, and it works fine, but the main problem now is that it does not displays the images properly, whether they are from Internet or from the sd card. I do have Internet permission available and the Write/Read external storage too.

This is my code:

Edit.setText(Html.fromHtml("<strong>IT IS STRONG</strong>" +
        "<p>Tiptoe</p>" +
        "<img src=\"/sdcard/Pictures/Screenshots/Screenshot_20200204-230814.png\"/>"));