Presumably it seems that the "DTE" device operates at 2.8V and the "Module" side operates at 3 or 3.3V.
If the DTE makes TXD high (i.e. 2.8V) then UART1_RXD will also be high being pulled up by the 10K resistor.
3.3V 3.1V 2.8V
VDD_EXT --- /\/\/ ---- --|>|- --- TXD
10K
I say "3.1V" here because some current has to flow through the resistor to create the voltage drop across the diode.
If the DTE pulls TXD low then the other side of the diode will be like 0.6V which hopefully still registers as a low for the module.
3.3V 0.6V 0V
VDD_EXT --- /\/\/ ---- --|>|- --- TXD
10K
Basically the diode raises the high voltage level of the DTE by something like a diode drop.
The other diode lowers the high voltage level of the Module by 0.6V.