External vs Internal storage does not refer to the memory location, but refers to the privacy policy. Internal storage means that only applications or processes of the system / superuser can access the content.
External storage can be read by each application, this is what appears when you connect your phone to the computer, so you can think of it as what is shown to everyone else, therefore, "external".
I have, for example, Samsung S5, and it puts both internal and external storage into the same “internal” flash memory, they are actually just separate sections on the same stick.
When I add an SD card, it adds another (secondary) external storage.
Each Android device must come with internal and external storage, so devices that ship without an SD card, for example, guarantee the separation of internal memory into internal and external storage.
Regarding how External_Content_URI relates, it will return images that are in external storage - after reading the documents more carefully, it says that it only returns for the “primary” amount of external memory. I just noticed that the last part in quotation marks is itself, so I’ll check something in the next few days if the secondary external storage is also indexed or retrieved by the media, if someone else does not respond first.
http://developer.android.com/reference/android/provider/MediaStore.Images.Media.html
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