A necessary and sufficient condition (but I do not feel satisfied with that) for the locally compact length space $X$ to have a locally compact completion is that there exists some $r>0$ such that each ball of radius $r$ in $X$ is totally bounded.

In fact, if the condition holds closed balls of radius $r/2$ in $\overline{X}$ are compact.
On the other hand, suppose that $\overline{X}$ is locally compact. Then, as it is a complete length space, it is proper (this is called the Hopf-Rinow Theorem in the book by Bridson and Haefliger). This should imply that balls of any radius in $X$ are totally bounded.

The main reason why I am not satisfied with it is that the proof that the condition is sufficient does not use that $X$ is a length space, so this is not really the answer to what you asked. I thought it might be relevant, anyway...