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Hi @chcw,
Unfortunately, that’s impossible as for now; that would be quite a big feature to develop. But I think there are plugins that can generate watermark for images which are in the Media Library.
That said, in my opinion, watermark shouldn’t be used; it’s very easy to get rid of them, so it doesn’t avoid theft. I personally used watermarks for many years, and completely removed them from all my photos now. As a result; a better-looking website, happier visitors, and the number of photos I get stolen is just the same 🙂 But yeah, again, it’s just my opinion.