Thanks markwmsn! I tried out your answer and it seems correct, but with one note, that double clicked images seem to open in the Pictures folder even if it's not the target folder for downloads.
I have Image Capture set to import (from my iPhone) to Photos. When I double click on an image it opens in Preview and gets the check mark in Image Capture, which didn't disappear when I closed the image in Preview. You were correct in that this was because the image was already on the computer, I hadn't noticed that it had downloaded to the Pictures folder. It had not however downloaded to Photos, which was the target location.I guess double clicked images always download in the Pictures folder.
When I trashed the Image, disconnected and reconnected the iPhone, the check mark was gone. If I don't trash the image, the check mark will still be there.
So, thanks again.
I'm not sure I really see the usability of this though. Maybe if the check marks appeared as soon as Image Capture is connected, for all imaged that are already in the target location. There should also be documentation on this in Help.