Do digital cameras save a copy of photos, in addition to the memory card?

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jay elle eff asked:

I am wondering if some digital cameras retain a copy of all photos taken in addition to the memory card?

I discovered an area on my digital camera called “gallery” and it was an album of every photo ever taken on my camera included photos I had deleted from my memory card. Were these deleted photos from my memory card or my camera?
My camera is a Sony DSC-N2
I am not referring to the software that came with my camera because the camera was the one on display and was actually missing the instructions, software and wrist strap when I purchased it.

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