It wont read on regular 'Ohms' scale on a dig. meter but must be tested on the 'diode' setting on your meter,
Is there something that is different about this diode that it can't be read by the resistance setting on a digital multimeter? Wouldn't the diode forward-biased read no resistance and reversed biased read "OL"?
Test devices often inject power into the circuit to be tested, and makes measurements upon the power that gets back to it. This is how it determines, say, how much resistance is in the circuit being tested, and why you make these measurement with the power in the tested device off. Active silicon devices are sensitive to voltage levels and activate into conduction when doing so.
If you are troubleshooting a complex device, activating the devices in it often makes it impossible to find faulty passive devices in the circuit if a device wired in parallel is activated during the test. A 10K ohm resistor may read about 30 ohms if the diode or transistor junction wired along with it is activated. To read the passive device properly would then require you to remove the active devices in the circuit you are testing in order to find the faulty passive components, or verify they are of correct value. So, modern test devices usually inject very little voltage into the circuit and are very sensitive to what it gets back for measurement. In this way, transistor or diode junctions are never activated into conduction, and don't have to be removed to find faults in faulty circuits. However, you still need to find faults in active devices as well. So, modern devices have a separate setting that supplies a slightly higher voltage which purposely activates transistor and diode junctions, allowing them to predictably conduct or not depending on the polarity of the power applied to them.
If you have a second multimeter, you can actually measure the voltage output difference between the various knob settings using that second meter.
Sometimes, it is better to know more than the built in smarts of the test equipment you use.
Cheers,