(1) It works well in Win 10, at "START, Settings, Update & Security, Backup, Go to Backup & Restore (Win 7), Create a system image". Make the Repair Disc to restore it with, or ask Cortana for "Recovery Drive" to make it on USB. This is always good to have. (You are right, it does not have the features Obm said. Maybe File History has that.) Also see...
https://www.winhelp.us/restore-a-system-image-in-windows-7.html
Restore a System Image Backup in Windows 7, 8, 8.1 and 10
Note1: That is a 3rd-party site. Looks good, but I know nothing of any links or downloads there.
Note2: I like Backup & Restore. It creates shadow copies accessible in File Explorer to retrieve individual files without even needing to plug in the HDD that holds the image. But I also use a 3rd-party app for added assurance. If you have a Seagate or Maxtor HDD, there is a free version of Acronis at their site. Seagate calls it DiscWizard. These are faster, make more compact images, & are more flexible. Macrium Reflect & AOMEI Backupper also have free versions.
(2) What is the E: drive? Did it just show up out of the blue after an upgrade to 1803? If out of the blue, see Tiero Chi's answer here...
New partitions may appear in File Explorer after installing the Windows 10 April 2018 Update (version 1803)
That drive is not supposed to have a letter.