Yes, embedding of files are permissible inside the Content Library.

Below are the steps to do the same:

Step 1: Click on the 'upload content' from the right hand side dashboard. (see the rectangular box, below)


Step 2: Click on Embed Content option:


Step 3: Copy and paste the embed code in the specified box & click continue (Supported websites are youtube, scribd, authorstream & slideshare):