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There are two wires on a diode: Anode (positive in) and Cathode (negative out). A diode may have a grey band at the cathode end, and black at the anode end. Diodes come in many sizes and capacities, some with clear markings, some without, so there are times when a multimeter has to be used.

Set the multimeter to the diode setting (looks like an horizontal arrow fired from a bow, with three lines meeting at the arrow-head's tip). Touch one wire with the red + probe, and the other wire with the black - probe. If there is no reaction, electricity is not flowing. Reverse the probes and you should get a reaction showing that electricity has been detected. So the red probe marks the anode wire and the black probe marks the cathode wire.

If there is no reaction, whichever probes are tried, then the diode is dead.

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