You're basically there! Suppose $\theta:D_{10}\to G$ is a group homomorphism. Since we're only interested in the image of $\theta$, we might as well assume that $\theta$ is surjective, so that $G=\mathrm{Im}(\theta) $. Then by the first isomorphism theorem, $$G\cong D_{10}/\ker\theta$$which isn't quite what you stated.
Hence, if $G$ is the image of a such a homomorphism, then we must have $G\cong D_{10}/N$ for some normal subgroup $N$.
The converse is also true: if $N$ is a normal subgroup, then the map$$D_{10}\to D_{10}/N\\g\mapsto gN$$is a homomorphism.
Hence the possible images are exactly $D_{10}/N$ where $N$ is normal in $D_{10}$.