Which method would indicate a properly functioning diode during a multimeter test?

A properly functioning diode during a multimeter test would typically be indicated by a reading of "OL," which stands for "over limit." When testing a diode in the forward bias direction, a functioning diode will allow current to flow and should show a low resistance reading. In the reverse bias direction, the diode should block current flow, and the multimeter will display an "OL" reading because it indicates open circuit conditions, meaning that there is effectively no current flowing and thus no resistance measured.

This scenario where "OL" is displayed confirms that the diode is not conducting in reverse bias, which is the expected behavior for a healthy diode. Therefore, if you receive an "OL" reading in the reverse direction while expecting a low resistance in the forward direction, it is a strong indication of the diode's proper functioning.

Other readings, like "1.00" or "0.00," do not effectively indicate normal diode behavior during testing. A steady voltage reading would not provide the necessary confirmation about the diode’s functionality in the context of a standard resistance test.