I've got to agree with you; it's not the best-written proof in HTT. Let me go through it glacially slowly (for my own sake!) to see if I can write something that will help clarify the role of $X$.
Let me write $Map(U,V)$ instead of $V^U$. I find it easier to parse on the internet.
First, what is our $X$? It's the simplicial set of sections of $Stimes_TDelta^1toDelta^1$, that is, it is the fiber product
$Map(Delta^1,Stimes_TDelta^1)times_{Map(Delta^1,Delta^1)}Delta^0$, where $Delta^0$ maps in by inculsion of $id$. So (since $Map(Delta^1,-)$ is a right adjoint) we get:
$$X=Map(Delta^1,Stimes_TDelta^1)times_{Map(Delta^1,Delta^1)}Delta^0=Map(Delta^1,S)times_{Map(Delta^1,T)}Map(Delta^1,Delta^1)times_{Map(Delta^1,Delta^1)}Delta^0$$
$$=Map(Delta^1,S)times_{Map(Delta^1,T)}Delta^0$$
where $Delta^0$ is mapping in by inclusion $f$.
Now we've got our map
$$q:Map(Delta^1,S)to Map({1},S)times_{Map({1},T)}Map(Delta^1,T),$$
whose fibers over $f$ we seek. That is, we just include
$$S_{t'}=Map({1},S)times_{Map({1},T)}Delta^0to Map({1},S)times_{Map({1},T)}Map(Delta^1,T)$$
(which is itself the pullback of $f:Delta^0to Map(Delta^1,T)$ along the projection, of course) and we pull back to get $q'$.
So the result is a pullback of a pullback. (If I knew how, I'd draw the two pullback squares here.) The composite pullback is the pullback of $f:Delta^0to Map(Delta^1,T)$ along $Map(Delta^1,S)to Map(Delta^1,T)$. But this is what we called $X$. So our result is a map $q':Xto S_{t'}$, and its fiber over any vertex of $S_{t'}$ must coincide with the fiber over the corresponding vertex of $Map({1},S)times_{Map({1},T)}Map(Delta^1,T)$, since that will be a pullback of a pullback as well.
Edit (Harry): I typed up the final version of the diagram. If the letters aren't explained, you can deduce what they are just by either looking at Clark's argument or just tracing the pullbacks. Every square is a pullback, so everything is very easy to deal with.
$$ matrix{
X&cong&S^{Delta^1}_f &to &Y^{Delta^1}&to& S^{Delta^1}&
cr &searrow&downarrow &Pb &downarrow&Pb&downarrow
cr L_f&cong &S_{t'} & to &L'&to& L & to & S^{{1}} &
cr &&downarrow &Pb&downarrow&Pb&downarrow&Pb&downarrow p
cr &&Delta^{0} & to &(Delta^1)^{Delta^1} &to& T^{Delta^1} & to & T^{{1}}
cr &&&id&&(f)^{Delta^1}&&d_1} $$