To simulate leakage current from a reverse bias diode using LTSpice, a model with an Roff parameter for off resistance in parallel with the diode is recommended. Users can input this model in the .model statement of the diode definition. If a .net file is not available, the LTSpice .asc and .plt files can be utilized by removing the .txt extension for execution. To modify the diode model, right-click on the diode and paste the copied model as a .model SPICE directive, allowing for parameter adjustments. The leakage current can be effectively adjusted by changing the Is parameter in the model.