It is not true and the discrete metric space $M$ (with $\vert M \vert >1$) is actually the counter example. There we have $S(x,1) = \{x\}$ since $x$ itself is the only point having distance stricly smaller than $1$. But $\overline{S}(x,1) = M$ since for every $y \in M$ we have $d(x,y) = 1 \leq 1$.
Thus we have $$\text{diam}S(x,1) = \sup_{y \in S(x,1)} d(x,y) = d(x,x) = 0$$ but $$\text{diam}\overline{S}(x,1) = \sup_{y \in M} d(x,y) = 1 ~~.$$
All of these examples rely on the fact that in a general metric space $\overline{S}(x,1)$ need not be equal to $\overline{S(x,1)}$. If that is the case, then your assertion is true since for any set $\text{diam}(A) = \text{diam}(\overline{A})$.
For example, for metric spaces where the metric is induced by a norm, the formula $\overline{S}(x,1) = \overline{S(x,1)}$ is true.