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How can I change the privacy setting of a Facebook group (500+ members) from secret to closed?

I can't see any option to do so in Edit Group Settings.

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You no longer can might if you are still under 5k members, as per facebook rules after a group gets above a certain size (250 5000 users), you can only increase its privacy level

Groups with 5,000 members or more:

  • The privacy of the group can only be changed to a more restrictive setting (ex:Public to Closed, or Closed to Secret). We do this to protect members of these groups from having their posts shared with audiences they didn't intend.
  • Once the privacy is changed to a more restrictive setting, all admins have 24 hours to change it back.

Edit: 2016-01-03 The limit have been lifted to 5000 members. Thanks @Michael Bray

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As of some recent date ("about a month ago" according to the article you quoted) the cut-off number is now 5,000. I have confirmed in a FB group that I'm a member of (I alerted the admin) and she changed the group from secret to closed.. so the 250 number is old information. – Michael Bray Jan 3 at 3:08
    
Thanks for the update @Michael, for the down voters, please note I answered this question more than 2 years ago and the info was just recently updated! – AlvaroFG Jan 4 at 3:52

As of January 2016: It seems that at some point recently, the Facebook article quoted by AlvaroFG was edited ("about a month ago") and now reports that the cut-off number is 5,000. If you still are under 5,000 members you should be able to change.

https://www.facebook.com/help/286027304749263

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OK well I have confirmed... There is a group that I am a member of (not an admin) with about 3,200 members that wanted to change. I alerted the admin, and she has now successfully changed the group from secret to closed. – Michael Bray Jan 3 at 3:06

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