Use a photo as your wallpaper

You can use any 
picture you load onto your iPhone or iPod touch as your wallpaper (the image you see when you awaken your device from Sleep mode). Open Photos, tap on the desired picture, and then tap the options button in the lower left corner of the screen. Then tap Use As Wallpaper, and the “Move and Scale” screen will appear where you can move the image up or down or zoom in on it (by touching and spreading your fingers) until the picture appears as you want it to. When you are ready, tap Set Wallpaper.

You can set your own photos as Wallpaper.