Well it's formally wrong (or too unclear to express it nicer). And somewhat unclear. Your question is also somewhat unclear (there are many $1$s).
The unclear part is that you introduce $L$ without mentioning that $L=-1$ which makes it not so obvious what happens when you state that $|f(x)-L| = |x-2|/|x-1|$.
The formally wrong is that you should prove that $x<\delta$ implies that $f(x)-L<\epsilon$, but from your reasoning it appear claim implication the other way. This leads to a wrongful estimate of $\delta$ (which you can see if you calculate $f(2-2\epsilon)$ for some small $\epsilon$.
Minor points are that $\max$ means maximum (that has to be taken), it's wrong to say that $\max(x-1)=2$ since $x-1<2$. And $\inf$ means infimum (that need not be taken), normally one doesn't use that with only two elements instead it should be $\min(1,2\epsilon)$.
By calculating $f(2-\delta_{max})$ (above) you can see that the result is slightly more than $-1+\delta_{max}$ which indicates that a estimate of even $\delta = \epsilon$ isn't enough. What you could try is to assume that $\delta = \max(1/4,\epsilon/2)$ instead and work your way backwards. What we need is an estimate of $1/|1-x|$ to do this we can use that $1/1-x = (1+x)/(1-x^2)$ and if $|x-2|<1/4$ you have $x>7/4$ and therefore $1-x^2 < 1-49/16 = -33/16$, so $|1-x^2| > 2$. This can be used to estimate $|f(x)-(-1)|$ if $|x-2|<\delta$:
$$|f(x)-(-1)| = \left|{x-2\over x-1}\right| = \left|{(x-2)(x+1)\over 1-x^2}\right| < |(x-2)(x+1)|/2 = |x-2||x+1|/2$$
Now we have $|x-2|<\delta \le \epsilon/2$ and we have that $7/4 < x+1 < 9/4$ so this means
$$|f(x)-(-1)| < {\epsilon\over2} {9\over 4}{1\over2} = {9\over 16}\epsilon < \epsilon$$
The actual way you find the estimate for $\delta$ is to just limit it to stear clear of the singularity for $x=1$, so you assume that $\delta<1/4$ for example, then you calculate an estimate of $|f(x)-(-1)|$ in an easy form based on $\delta$ then you can see what $\delta$ must be in relation to $\epsilon$, then you see that $\delta<\epsilon/2$ would do and you insert that in your estimate too (making $\delta = \min(1/4, \epsilon/2)$) and update your calculation.