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How does a laser diode create light?

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Relevant answers:

Diode laser is a which laser?
It's a semi-conductor laser
What type of laser is a diode laser?
A diode laser. Also, a continuous wave laser. A diode laser. Also, a solid state laser. A diode laser. Also, a high efficiency laser, comparing to other types of laser.
Is a laser light a type of light?
Yes. Laser light is special in that all the waves of electromagnetic energy are temporally and spacially coherent i.e. the waves are in step (or in phase) with each other and travel in a thin beam...
Is a light emitting diode called a light emitting diode if its not on?
YES
Difference between light emitting diode and laser?
They are both diodes except the output frequency of emission is shifted to that range