If you're online and have an iTunes account, it can automatically locate the cover art for each CD as its loaded. However, a lot of obscure stuff can't be found and some of the other covers it finds are just WAY wrong.
Since I'm OCD about like that, I discovered that you can use Amazon.com or something like that to find the CD you're loading and copy/paste the cover art into iTunes. If you just want the artwork in iTunes, you just have to paste it into the "Get Info" screen for one song on an album. If you want it to display on your iPod, you have to copy/paste into each individual song.

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