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Diamonds can be found in levels below 16, but when it comes to limited mining, a 3-by-1 tunnel can be done on levels 10,11, and 12 for a maximum number of diamonds. Level 12 has the highest chance of spawning.
1-15 all can have diamonds, but statistically y6 has slightly more diamonds. However most people seem to suggest 11 because of the lava pits. If you're digging around lower than 11 you might dig through a wall and have lava come through at foot or head level. At y11 the lava is floor level instead.