All InDesign shows you is a preview of the image – for page layout purposes only. If you want to check the quality of raster images then you need to use the Window>Info and make sure your images are a high enough PPI – it's imporant to read the Effective PPI and not the Actual PPI. If the Effective PPI is from 225 ppi or above then the images are most likely fine. If you want to view the image to see quality you need to open the image in your raster editing program, like photoshop or other.
Vector images may appear jagged, but again this is only the Preview. If you're concerned about quality you need to open the image in your vector editing program, like Illustator or other, and make sure the quality is acceptable.
The Display Performances in InDesign (View Display Performance) can show you a fast (no graphics shown), typical (lo-res preview) or high (high res preview). Depending on the amount of graphics and/or the quality of the graphics the High setting can seriously degrade the speed of your computer, which could hinder production.
Working in Overprint Preview is always a good idea, but this will use the High Quality display performance and also with Overprint Preview turned on you cannot see Spelling Errors (that is if you have enabled Dynamic Spelling in Edit>Spelling>Dynamic Spelling). But the Overprint Preview gives you a High Quality Display of images and it also shows you how colours interact with each other when Blending Modes and Transparencies are in play (albeit that sometimes it's not very accurate – I've had my 'mare moments).
Anyway – InDesign is for Page Layout for mostly printing purposes. If your images display high enough quality in their Parent Applications (Photoshop/other or Illustrator/other) and you're satisfied with the onscreen quality shown then they should be fine. But you should always do a print out – again InDesign is primarily for laying out documents for Print – so the only way you can be sure if it's accurate is to print it out.
If you're getting it printed by a lithographic printing/digital/flexo etc. you should always get a proof from the printer that has gone through their system and if you're concerned about the quality of any images you can request that those pages are supplied as High Res print outs for your sign off.