Let $\Omega$ be a bounded, connected, open domain in $\mathbb{R}^d$ with smooth boundary. Denote by $C^{0,1} (\overline{\Omega})$ the space of continuous functions $u$ on $\overline{\Omega}$ such that
$$ \sup_{\substack{x,y \in \overline{\Omega}: \\ 0 < |x-y| \le 1 } }\frac{|u(x) - u(y)|}{|x-y|} < + \infty.$$
Let $C^\infty(\Omega)$ denote the space of smooth ($C^\infty$) functions $u$ on $\Omega$ such that all derivatives of $u$ have continuous extensions to $\overline{\Omega}$.
I would like to know whether $C^\infty(\overline{\Omega}) \subseteq C^{0,1} (\overline{\Omega})$. I would also like to know whether certain conditions can be relaxed, e.g., do we only need to assume $u \in C^1(\overline{\Omega})$, and must the boundary of $\Omega$ be smooth?
If $\overline{\Omega}$ is simply a closed ball $B$ in $\mathbb{R}^d$, then we immediately get (from the convexity of $B$ and the multidimensional mean value theorem) that $|u(x) - u(y)| \le \| \nabla u \|_{L^\infty(B)} |x - y|$ for all $x,y \in B$. However, it seems trickier to get such an estimate for general $\overline{\Omega}$, and this is where I'm stuck. I expect that $\overline{\Omega}$ will need to be covered by suitable small neighborhoods (this is where $\Omega$ being smooth may need to be used), and then finitely many local Lipschitz estimates will need to be pasted together.
This requires some care in how you define these spaces, but it would hold if we adopt for instance the following definition.
In this case we have $C^1(\overline\Omega) \subset C^{0,1}(\overline\Omega)$ by using the following result.
Proposition. If $u \in C^1(\overline{\Omega}),$ there is a global extension $v \in C^1_c(\Bbb R^n)$ such that $v = u$ on ${\Omega}.$
Proof: By definition and compactness of $\overline\Omega,$ we can find a finite covering $U_1,\dots,U_m$ of $\overline{\Omega}$ and extensions $v_i \in C^1(U_i)$ such that $v_i = u$ on $U_i$ for each $i.$ Then we can take a partition of unity of $\overline\Omega$ subordinate to the cover $\{U_i\};$ this gives $\rho_i \in C^{\infty}_c(U_i)$ such that $0 \leq \rho_i \leq 1$ and $$ \sum_{i=1}^m \rho_i \equiv 1 \text{ on } \overline{\Omega}. $$ Then we have $$ v = \sum_{i=1}^m \rho_i v_i $$ is well-defined, lies in $C^1_c(\Bbb R^n)$ and satisfies $v=u$ on $\Omega$ as required.
Now this is not quite how you defined $C^1(\overline\Omega).$ The two definitions are equivalent however, thanks to the following result.
Proposition 2. Suppose $u \in C^1(\Omega)$ such that $u, \partial_{x_i} \in C^0(\overline\Omega)$ for each $i.$ Then $u \in C^1(\overline\Omega).$
This is a consequence of the more general Whitney extension theorem. I'm not sure if there is a simpler way to prove this, but the above also allows you to consider higher derivatives and unbounded domains.