The outstanding material properties of single-crystal diamond have been the origin of the long-standing interest in its exploitation for engineering of high-performance micro- and nanosystems. Etching and patterning diamond have proven challenging due to the hardness and chemical resistance of the material. In this work, the patterned etching process of single-crystal diamond has been investigated using the inductively coupled plasma etching technique. In order to avoid the micromasking phenomenon caused by the metal mask, this paper adopts the Ar/O2-Ar/Cl2/BCl3 two-step cycle etching process and investigates the effect of the Cl2/BCl3 gas ratio on the bottom morphology of single-crystal diamond grid grooves. A theoretical explanation is provided for the use of chlorine-based gases to eliminate micromasking and achieve a smooth etching surface. Finally, an Ar/O₂-Ar/Cl₂/BCl3 cyclic etching process for patterning single-crystal diamond with near-zero micromasking has been developed.