I have one VPC set up in AWS, but Default VPC is set to 'false'.
How can i change it to true, and make it the default VPC?
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The introductory blog post Amazon EC2 Update - Virtual Private Clouds for Everyone! outlines in section Default VPCs for (Almost) Everyone that "The default VPC features are available to new AWS customers and existing customers launching instances in a Region for the first time".
Furthermore this is indirectly confirmed by the information within Your Default VPC and Subnets, see Deleting Your Default VPC in particular:
You can delete your default VPC just as you can delete any other VPC. However, after you've deleted your default VPC, it's gone. Now, you must specify a subnet in another VPC when you launch an EC2 instance, because you can't launch instances into EC2-Classic. [...]
If you delete your default VPC and then need to restore it, you can contact AWS Support to have your account reset so that we can create a new default VPC for you.
[emphasis mine]
I recall reading somewhere that they might add respective self-service it later on, but can't find it again and vague announcements like this are rather unusual for AWS anyway, so I might be wrong (and wouldn't hold my breath either way).
As of June 2018 (might have been available earlier) you can create a (new) default VPC by using Actions --> Create Default VPC
Simple Answer: You cannot
Detailed answer: You can request AWS support to create a default VPC for you in the required CIDR. But you need to make sure that the range of the VPC that you want to be made default is not already created by you in that account.
Basically, you will mention the range and details to the support and they will create it for you.
I also ran into this issue, I was unable to create a new VPC as Default-VPC nor was I able to set an existing VPC as Default-VPC (because under Action "Create Default-VPC" was disabled). But the solution is so simple, execute the cmd from CLI and it works. Make sure you have configured "aws configure" in advance.
aws ec2 create-default-vpc
You can't set your own as default, and if you delete your default VPC and then create your own, AWS is unable to set that VPC to default too. They have to create the vpc as default. No idea why, this seems a bit restrictive.