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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.
Diamonds are vanilla items, dropped when Diamond Ore is mined. They can only be found at layer 1-16 in a map. They are considered extremely valuable as they have 1562 uses opposed to iron, which only has 251. Diamonds can also be obtained through Macerating Nether Diamond Ore. Doing this will give you 2 diamonds, as opposed to smelting it, which will only give one.