Text editor- not just inserting code?

[RaiinbowEyes]

Sorry if this is a stupid question, but I'm new to all this and really want to find out how to do this.

So a lot of the vBulletin forums I see have the regular text editor that comes with it. You type and if you want something bolded or whatnot you click the button in the editor and it inserts the code for you. However, I've seen several where it doesn't insert the code, it just DOES it in the editor (no preview ect necessary). It also inserts pictures in the editor and you can drag to resize them, as well as all the other functions. Honestly I thought this came with the software as the only forum I frequent that runs on it has always had this.

I've found the code is a deterrent to people wanting to use the forums because they are not familiar with it, and it is just frustrating and annoying to them. I can't seem to find a obvious answer as to how to change this. Is it a option, or a mod, or several mods, or ..? Could anyone point me in the right direction?
I'm hoping this isn't a long shot or a rare or obscure thing but if it wasn't why wouldn't everyone use it? Please help me out!