Linux’s GRUB2 boot loader can boot Linux ISO files directly from your hard drive. Boot Linux live CDs or even install Linux on another hard drive partition without burning it to disc or booting from a USB drive.
We performed this process on Ubuntu 14.04 — Ubuntu and Ubuntu-based Linux distributions have good support for this. Other Linux distributions should work similarly.
Full article here:
How to Boot Linux ISO Images Directly From Your Hard Drive (How-To Geek)