"Installed" and "Compiled into" is not really logical - and it's not obvious that there is a difference or what the difference is.
True, as a user you should not need to know.
Currently packages can not be loaded at runtime (i.e. as libraries, or similar). Instead the entire IDE is recompiled, and the package is included.
At least for run time packages. That is packages that affect the IDE, or are needed in the Form-Designer. (A package that only runs in your app, and has no components for the designer, is not needed in the IDE)
Anyway normally the IDE will just do the work, if you install the package.
Only in case of an upgrade of the IDE this is not currently the case. Very unfortunate...