Place all object textures in this directory. Object textures need to have .jpg file extension. (e.g greenflower.jpg)
Textureable objects can be found in editor CustomModel category. Replace "Default" with your texture name without the extension. 

Example: To use "greenflower.jpg", put "greenflower" instead of "Default" in Tex Fireflower. If the provided texture does not exist, editor reverts it to "Default".